Query about Sales Tax of Illinois

Hi there, @vishvajeet-smboo. 

I'm here to help you with the sales tax overpayment in QuickBooks Online (QBO).

Here's how:
 

1. From the Taxes tab, select Sales Tax.
2. Find the tax period you need to adjust, and then select View return.
3. Select Add an adjustment.
4. Select the Reason for the adjustment.
5. Choose an income account.
6. Enter the Adjustment amount, and then select Add.

For more information about the process, you can check to save this reference: Create or delete a sales tax adjustment.

Furthermore, check out these articles below to learn how to refund tax and determine if your sale is exempt from tax in QuickBooks Online:

• Refund sales tax
• Conducting nontaxable sales

Don't hesitate to inform us here in the Community if you have further questions about sales tax overpayment in QBO. We're always here to help.

Hello DeebSheen,

I hope you are doing well!

Thank you for the response on the query.

However this is not income as we are paying more than what Quick book has calculated.
ie: this difference of amount is not collected form the customer via invoice.

For cases where sales site calculate the less tax values due to discounts given by agencies compared to teh value calculated by Quick book, the difference is surely an income to the company.

As of not for this case i have created one "other expences : Sales tax adjustment" account and recorded this expense.

Please let me know your view on this.